Company Car tax Calculator
The new version of the HMRC Company Car Tax Calculator is available. For any car changes that an employee has within the Tax Year, a P46 Car form must be submitted.
Advisory mileage rates
HMRC published the updated Advisory Fuel rates which are applicable from 1 September 2025, which has, for the first time, included two rates for electric vehicles based on whether the vehicle is being charged on domestic or public charging rates. See the following article (link here) for further details.
Employers PAYE disputed charges-update
From 31 of August 2025 companies will no longer be able to report an Employers PAYE dispute through HMRC’s helplines or webchat.
New Umbrella legislation
From 6 April 2026, new rules in ITEPA 2003 and the Social Security Contributions and Benefits Act 1992 will make recruitment agencies or end clients jointly liable for unpaid PAYE and NICs where umbrella companies default.
Link to our article here for more information.
HMRC compliance targeting of directors loans written off
HMRC is cracking down on written-off or released directors’ loans for the period from 2019–2023, requiring them to be declared as taxable income; letters are being issued urging voluntary disclosure to avoid higher penalties.
Please read our article here
HMRC interest rates for late and repayments
The interest rates for late and repayments on income tax and national Insurance contributions have changes from 27 August 2025 to:
- late payment interest rate — 8.00%
- repayment interest rate — 3.00%
The rates are calculated as follows:
- Late payment interest: Bank of England base rate + 4% (from 6 April 2025; previously + 2.5%).
- Repayment interest: Bank of England base rate – 1%, subject to a minimum of 0.5% (“minimum floor”).
The difference in the two rates is explained by HMRC: ‘the rates align with international tax practice and reflect typical commercial interest on loans and deposits’.
